American Airlines

Hubs: Chicago, Dallas-Fort Worth, Miami, and San Juan, Puerto Rico
Quarterly Net Loss: $328 million

American's parent, AMR (AMR), recently imposed a hiring freeze on managerial and support staff, and plans to take delivery of 34 new Boeing 737s next year to replace older MD-80s. The company, led by CEO Gerard Arpey, will cut its domestic capacity by 3.6% this year.

M&A Outlook: Slim. American, which bought TWA in 2001, has been reluctant to jump into M&A deals. Media reports have said it and Continental have discussed a strategic alliance, but any such deal will not involve one airline acquiring the other.